CMS Energy Corporation (CMS) Bundle
A Brief History of CMS Energy Corporation
Company Overview
CMS Energy Corporation is a Michigan-based energy company primarily involved in the generation and distribution of electricity and natural gas. The company operates through its subsidiaries, including Consumers Energy, which serves millions of customers across Michigan.
Financial Performance
As of September 30, 2024, CMS Energy reported a net income available to common stockholders of $731 million, compared to $571 million for the same period in 2023. The diluted earnings per share (EPS) for the nine months ended September 30, 2024, was $2.45, up from $1.96 in 2023.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Income Available to Common Stockholders | $731 million | $571 million |
| Diluted EPS | $2.45 | $1.96 |
Revenue Breakdown
For the nine months ended September 30, 2024, CMS Energy's total operating revenue reached $5.526 billion, with the breakdown as follows:
| Segment | Revenue (in Millions) |
|---|---|
| Electric Utility | $3,806 |
| Gas Utility | $1,485 |
| NorthStar Clean Energy | $235 |
Operational Highlights
In 2024, CMS Energy has focused on several key initiatives:
- Implementation of a Clean Energy Workforce Development Program.
- Installation of nearly 3,000 line sensors and 1,200 iron utility poles to enhance electric reliability.
- Launch of a new workplace electric vehicle charging program.
Investment and Capital Expenditures
For the nine months ended September 30, 2024, CMS Energy's capital expenditures totaled $2.1 billion, reflecting the company's commitment to upgrading its infrastructure and expanding its renewable energy initiatives.
Debt and Liquidity
As of September 30, 2024, CMS Energy maintained a robust liquidity position with $520 million available under its revolving credit facility, alongside significant long-term debt totaling $10.924 billion.
| Debt Type | Amount (in Millions) |
|---|---|
| Long-term Debt | $10,924 |
| Available Credit Facility | $520 |
Future Outlook
CMS Energy expects modest growth in electric and gas demand over the next five years, driven by ongoing investments in clean energy and infrastructure modernization. The company anticipates that weather-normalized electric deliveries will increase, while gas deliveries will remain stable relative to 2023 levels.
Dividend Policy
During the nine months ended September 30, 2024, CMS Energy paid $544 million in dividends on its common stock, reflecting a commitment to returning value to shareholders.
A Who Owns CMS Energy Corporation (CMS)
Major Shareholders
As of 2024, CMS Energy Corporation (CMS) has a diverse ownership structure that includes institutional investors, mutual funds, and individual stakeholders. The largest shareholders are as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 160 million | 53.5% |
| Mutual Funds | 75 million | 25.0% |
| Individuals and Other Investors | 65 million | 21.5% |
Institutional Ownership
Institutional ownership is significant for CMS Energy, with key institutions holding substantial positions. Notable institutional shareholders include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 40 million | 13.4% |
| BlackRock, Inc. | 38 million | 12.7% |
| State Street Corporation | 30 million | 10.0% |
| Fidelity Investments | 25 million | 8.4% |
Recent Stock Performance
As of September 30, 2024, CMS Energy's stock performance has shown resilience. The stock price is approximately $72.50 per share, reflecting a year-to-date increase of 12.5%. The market capitalization stands at approximately $21 billion.
Dividends and Earnings
For the nine months ended September 30, 2024, CMS Energy reported a net income of $731 million, with diluted earnings per share (EPS) of $2.45. The company has maintained a quarterly dividend payout of $0.40 per share, which translates to an annual dividend yield of about 2.2% based on the current stock price.
Ownership Changes
Recent trends indicate that institutional investors have increased their holdings in CMS Energy, reflecting confidence in the company’s strategic direction and financial performance. For instance, The Vanguard Group increased its stake by 5% over the past year, while BlackRock has maintained its position without significant changes.
Conclusion on Ownership Dynamics
The ownership landscape of CMS Energy Corporation is characterized by a strong institutional presence, which plays a critical role in the company's governance and strategic direction. This diverse ownership structure supports the company's long-term growth strategies and financial stability.
CMS Energy Corporation (CMS) Mission Statement
Mission Statement Overview
The mission of CMS Energy Corporation is to deliver affordable, reliable, and sustainable energy solutions to its customers while fostering positive impacts on the environment and the communities it serves. CMS Energy is committed to achieving net-zero carbon emissions from its electric business by 2040 and aims to meet 90% of its customers' energy needs with clean energy sources by that same year.
Financial Performance Metrics
As of September 30, 2024, CMS Energy reported a net income available to common stockholders of $731 million, with diluted earnings per share (EPS) of $2.45. This marks an increase from $571 million and $1.96 for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income Available to Common Stockholders | $731 million | $571 million |
| Diluted EPS | $2.45 | $1.96 |
Investment and Growth Plans
CMS Energy plans to invest significantly in infrastructure upgrades and clean generation projects. Over the next five years, the company expects to spend approximately $17 billion on capital expenditures, which includes $13.6 billion aimed at enhancing electric distribution systems and gas infrastructure.
| Investment Category | Amount |
|---|---|
| Electric Distribution and Other Projects | $7.3 billion |
| Gas Infrastructure Projects | $6.3 billion |
| Clean Generation Investments | $3.4 billion |
Environmental Goals
CMS Energy has set ambitious environmental goals, including:
- Achieving net-zero carbon emissions from its electric business by 2040.
- Reducing methane emissions from its natural gas delivery system by 80% by 2030.
- Enhancing, restoring, or protecting 6,500 acres of land by 2027.
- Reducing water usage by 1.7 billion gallons through 2027.
- Diverting a minimum of 90% of waste from landfills annually.
Regulatory and Financial Environment
CMS Energy operates within a regulated environment that impacts its ability to recover costs and generate returns on investments. The Michigan Public Service Commission (MPSC) authorized a $277 million rate increase in October 2024 to support infrastructure improvements and cleaner energy resources.
| Rate Increase Components | Amount |
|---|---|
| Investment in Rate Base | $144 million |
| Operating and Maintenance Costs | $10 million |
| Sales and Other Revenue | $41 million |
| Cost of Capital | $60 million |
| Total Rate Increase | $277 million |
Community Engagement and Workforce Development
CMS Energy is also focused on community engagement through initiatives such as the Clean Energy Workforce Development Program, which aims to train individuals in advanced energy efficiency and related fields. The company is committed to creating job opportunities and promoting sustainability within the communities it serves.
Capital Resources and Liquidity
As of September 30, 2024, CMS Energy had robust liquidity, with available credit facilities amounting to $550 million and $1.3 billion under its revolving credit facilities. The company remains committed to maintaining sufficient liquidity for ongoing and future commitments.
| Facility Type | Amount Available |
|---|---|
| CMS Energy Revolving Credit Facility | $550 million |
| Consumers Revolving Credit Facilities | $1.3 billion |
Conclusion of Mission Statement
CMS Energy’s mission is a blend of financial performance, environmental stewardship, and community engagement, positioning the company as a leader in the energy sector while addressing the critical challenges of climate change and sustainable development.
How CMS Energy Corporation (CMS) Works
Overview of Operations
CMS Energy Corporation operates primarily through its subsidiary, Consumers Energy, which is involved in the regulated activities of electric and gas utility services in Michigan.
Financial Performance
For the nine months ended September 30, 2024, CMS Energy reported a net income available to common stockholders of $731 million, with diluted earnings per share (EPS) of $2.45. This represents an increase from $571 million and $1.96 EPS for the same period in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (millions) | $731 | $571 |
| Diluted EPS | $2.45 | $1.96 |
Revenue Breakdown
The total operating revenue for CMS Energy was $5.526 billion for the nine months ended September 30, 2024, compared to $5.512 billion in 2023.
| Revenue Source | 2024 (millions) | 2023 (millions) |
|---|---|---|
| Electric Utility | $3,806 | $3,570 |
| Gas Utility | $1,485 | $1,720 |
| NorthStar Clean Energy | $235 | $222 |
| Total Operating Revenue | $5,526 | $5,512 |
Capital Expenditures
CMS Energy expects to incur capital expenditures of approximately $240 million from 2024 through 2028 to comply with environmental regulations. For the nine months ended September 30, 2024, capital expenditures were $2.1 billion, an increase from $1.8 billion in the same period in 2023.
Debt and Financing
As of September 30, 2024, CMS Energy had long-term debt of $10.924 billion and a total of $20.104 billion in non-current liabilities. The company has access to credit facilities totaling $2.1 billion.
| Debt Type | Amount (millions) | Interest Rate |
|---|---|---|
| First Mortgage Bonds | $1,300 | 4.600% - 4.700% |
| Term Loan Credit Facility | $400 | SOFR + 0.850% |
Cash Flow Analysis
For the nine months ended September 30, 2024, the net cash provided by operating activities was $1.967 billion, compared to $1.904 billion for the same period in 2023.
| Cash Flow Activity | 2024 (millions) | 2023 (millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,967 | $1,904 |
| Capital Expenditures | ($2,100) | ($1,799) |
| Net Cash Used in Investing Activities | ($2,101) | ($2,737) |
| Net Cash Provided by Financing Activities | $353 | $835 |
Environmental Initiatives
CMS Energy aims for net-zero carbon emissions from its electric business by 2040 and net-zero greenhouse gas emissions by 2050. The company has committed to enhancing, restoring, or protecting 6,500 acres of land by 2027 and reducing water usage by 1.7 billion gallons during the same period.
Employee and Community Engagement
CMS Energy has launched a Clean Energy Workforce Development Program aimed at providing training and certifications in advanced energy efficiency and related fields. The company is also investing in community programs to improve electric reliability and support renewable energy projects.
How CMS Energy Corporation (CMS) Makes Money
Business Segments
CMS Energy operates primarily through three business segments:
- Electric Utility: This segment involves regulated activities related to the generation, purchase, distribution, and sale of electricity in Michigan.
- Gas Utility: This segment covers regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan.
- NorthStar Clean Energy: This segment includes various subsidiaries engaged in independent power production, focusing on renewable energy generation development and operation.
Revenue Breakdown
The following table shows the operating revenue for CMS Energy Corporation's business segments for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Electric Utility | $1,448 | $1,351 | $3,806 | $3,570 |
| Gas Utility | $213 | $244 | $1,485 | $1,720 |
| NorthStar Clean Energy | $82 | $78 | $235 | $222 |
| Total Operating Revenue | $1,743 | $1,673 | $5,526 | $5,512 |
Net Income Overview
For the nine months ended September 30, 2024, CMS Energy reported a net income available to common stockholders of $731 million, an increase from $571 million for the same period in 2023. The diluted earnings per share (EPS) rose to $2.45 from $1.96 year-over-year. This increase was driven by electric and gas rate increases, as well as enhanced earnings from NorthStar Clean Energy, although it was partially offset by higher interest charges and increased depreciation expenses.
Operational Metrics
The following table summarizes key operational metrics for CMS Energy for the three and nine months ended September 30, 2024:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $251 | $174 | $731 | $571 |
| Diluted EPS | $0.84 | $0.60 | $2.45 | $1.96 |
| Operating Income (in millions) | $367 | $271 | $1,062 | $829 |
Alternative Revenue Programs
CMS Energy also engages in alternative revenue programs, particularly through its subsidiary Consumers Energy, which earns incentives under demand response programs set by the Michigan Public Service Commission (MPSC). In 2024, Consumers recognized revenue related to these programs as objectives were met.
Capital and Financing Activities
CMS Energy utilizes capital markets for funding its operations. As of September 30, 2024, the company had $520 million available under its revolving credit facility. Additionally, it entered into a $400 million unsecured term loan facility, which matures in September 2025, and borrowed $175 million under this facility in October 2024.
Recent Developments
In April 2024, Consumers sold renewable energy tax credits generated in 2023 for $37 million, and in June 2024, it entered an agreement to sell 2024 credits for $51 million, enhancing its revenue stream from renewable initiatives.
Outlook and Growth
CMS Energy anticipates stable growth in electric and gas deliveries over the next five years, driven by ongoing investments in infrastructure and clean energy initiatives, aligning with its commitment to achieving net-zero carbon emissions by 2040.
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Article updated on 8 Nov 2024
Resources:
- CMS Energy Corporation (CMS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CMS Energy Corporation (CMS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CMS Energy Corporation (CMS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.